The Hudson’s Bay Company is edging closer to a historic turning point, with a critical investor deadline looming and a surprise contender emerging from the West Coast. On Monday, insiders must declare whether they intend to make a bid for any part of the 354-year-old Canadian retailer’s remaining assets, including stores, leases, and intellectual property.
While many await clarity on what exactly is for sale, the process is revealing just how complex—and potentially transformative—this restructuring may be for Canada’s oldest company.
Two-Track Sale Process Underway
The restructuring of Hudson’s Bay is being handled under court supervision, with Alvarez & Marsal leading the restructuring efforts. Oberfeld Snowcap has been retained to oversee lease-related inquiries, while Reflect Advisors is acting as financial advisor for the company. The restructuring plan involves two key tracks: one for leasing assets and another for non-lease assets such as brand IP, the Gluckstein homewares label, the Zellers banner, and even the company’s art collection.
Insiders, including owner Richard Baker, have until Monday to formally express interest in acquiring assets. Any internal bid must be disclosed to Alvarez & Marsal and Reflect Advisors. If a bid involves leases, Oberfeld Snowcap must also be informed.
The process has been designed to ensure fairness, with court orders preventing advisors from disclosing sensitive financial data to insiders until they clarify their intentions. Those from outside the company—including investors, landlords, and other retailers—have more time to get involved, with final bids due by April 30 and lease-specific bids by May 1.
Richard Baker’s Next Move?
The future of Hudson’s Bay may still include its current owner. Richard Baker, who acquired the company in 2008 for $1.1 billion, remains a powerful figure in North American retail. Over the years, Baker has taken the company public and then private again, while selling off prized real estate to generate liquidity. Many of those moves attracted criticism for gutting the brand of its assets without reversing its decline.
Last summer, Baker added another twist to his portfolio by acquiring Neiman Marcus and Bergdorf Goodman for US$2.65 billion. He merged them into Saks Global, which now includes Saks Fifth Avenue and Saks Off 5th. Some observers suspect that stripping Hudson’s Bay of valuable IP and leases was always part of a longer-term play to consolidate luxury under a single umbrella, leaving the struggling Bay chain to collapse under its own weight.
Should Baker decide to bid again, it would offer a lifeline—but potentially at a significant discount compared to the brand’s past valuation. Bidding through a creditor protection process allows insiders to acquire assets free of prior liabilities, making it a strategic option in situations like this.
The End of an Era?
It’s expected that Hudson’s Bay will shutter the vast majority of its stores by summer. As liquidation sales roll out, up to 74 Hudson’s Bay locations, three Saks Fifth Avenue stores, and 13 Saks Off 5th outlets are anticipated to close, resulting in thousands of job losses nationwide.
Although the company has not published a full list of saleable assets, the scope appears vast. Everything from the brand’s trademarked Stripes motif to valuable downtown flagship leases could be in play. Experts say the company’s real value may lie in its legacy intellectual property, storied customer loyalty, and still-recognizable banners.
A potential wind-down would mark a sobering chapter in Canadian retail history. Founded in 1670, Hudson’s Bay was once the backbone of Canadian commerce and exploration. Today, it faces insolvency with liabilities nearing $1 billion, including $860,000 owed to a surprising potential suitor—B.C.-based shopping centre owner Weihong Liu.
Weihong Liu Declares Her Bid
Amid the uncertainty, an unexpected contender has stepped into the spotlight. As reported on the weekend by the Toronto Star, Billionaire businesswoman Weihong Liu, chair of Nanaimo-based Central Walk, has publicly declared her interest in acquiring Hudson’s Bay’s retail business. Her statement came through a series of videos posted to Chinese social media network RedNote.
Liu, who resides on Vancouver Island and also owns a mansion in Vancouver’s University Endowment Lands, says she intends to bid on “dozens” of Hudson’s Bay stores. In one video, filmed during a tour of a Bay flagship store, Liu said she feels the sadness Canadians are experiencing as the retailer falters and sees the opportunity as one that comes along “once every 300 years.”
She said in social media that she plans to hold a press conference on April 18 to formally outline her proposal.
Central Walk’s Canadian Footprint
Liu’s company, Central Walk, owns a trio of significant shopping centres in British Columbia: Mayfair Shopping Centre in Victoria, Woodgrove Centre in Nanaimo, and the expansive Tsawwassen Mills south of Vancouver. Her property empire also includes Arbutus Ridge Golf Club in Cobble Hill, all acquired in part using proceeds from the 2019 sale of her former Chinese mall—Central Walk Shenzhen—for the equivalent of C$1.25 billion.
In Canadian retail circles, Liu is known more for her low-profile approach than for public engagement. However, she has recently begun sharing more of her life online, using Mandarin-language video platforms to connect with Chinese-Canadian audiences and promote her shopping malls.
What’s Next for Hudson’s Bay?
Insiders have until end of day Monday to declare interest in the Hudson’s Bay assets. While insiders must act now, outsiders—including Liu—have until the end of April to submit binding bids. These bids must be accompanied by a 10% refundable deposit.
Alvarez & Marsal, Oberfeld Snowcap, and Reflect Advisors will evaluate all proposals, possibly auctioning assets where there are multiple interested parties. Any resulting deals must receive court approval by May 30, while leases not picked up will be disclaimed by July 15.
Last summer, Richard Baker’s investment firm, NRDC Equity, (re)purchased Germany’s Galeria department store chain out of bankruptcy, which HBC had previously bought but then sold a few years later. Galeria operates in the same mid-level segment as Hudson’s Bay, so perhaps there’s an opportunity to combine the two under the same umbrella? I thought it was odd how NRDC’s 2024 Galeria purchase fell outside of HBC, but it makes a bit more sense now that Hudson’s Bay’s financial difficulties are now public.
Central Walk seems to have quietly listed Woodgrove Centre for sale. Maybe this is to raise cash for a certain retail purchase?